Ken & Latrice Innes
  
Redding, CA 96002
  
primehalo@hotmail.com

April 1, 2002

PaceSetter Corporation
10461 Old Placerville Rd, Suite 170
Sacramento, CA 95827
Phone: 916-364-3900

Dear Sirs,

Thank you very much for your recent correspondence, and we do feel that $3,800 is a reasonable cost deduction for the cancellation of our garage door and the troubles with various representatives of the Pacesetter Corporation. As you are aware, the price breakdown previously sent to us contains three discrepancies ($358.98 for mutin bars, $127.07 for obscure glass, and $499.24 for 3 Hunter Douglas Blinds). As stated in your most recent letter, you could have shown these products as having a zero cost, and show all the other products as 14.3% higher.

Had this been done, we would have had no further complaints and would have accepted the previously mentioned $3,800. You say you choose instead to break down the $16,530 to show your costs, and not ours. This is not quite true, as your costs would not add up to exactly $16,530.Your costs and profits would, however. This is where the confusion arises. What you sent us was your price & profit breakdown, and what you were supposed to send us was our price breakdown. Consumer price breakdowns are very common, and we should not have had to explain this.

We are prepared to accept your offer with the following conditions:

1. Correct the glass in the bathroom so that it is obscure on the bottom only, as initially requested. We received totally obscure glass, and only recently noticed that it was not as originally requested.
2. Have Scott Benfield and Tim Dravesky each write us a sincere letter of apology for their part in the events of this terrible experience.

Although we will accept your offer if the above conditions are met, we would still like a complete price breakdown of our cost for the both the $16,530 and the original $24,088.00 quoted, with products, installation, and your profits listed as separate entities.